The value of strategic positioning and differentiation in the non-life reinsurance industry in South Africa
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Authors
Ncube, Hardman
Issue Date
2005-11-30
Type
Research Report
Language
en
Keywords
Strategic management , Resource management
Alternative Title
Abstract
Notable in strategic management research is a paradigm shift from industry/market
factors as determinants of competitive strategy to a resource-based view. This study
focuses on the extent to which firms in the reinsurance industry use resources for
strategic positioning and differentiation. A qualitative case study approach has been
adopted for this study. On the basis of open-ended questions, interviews were
conducted with 6 executives of the 6 chosen non-life reinsurance companies. In
addition to interviews, company annual reports were used. Results obtained point to
similarities in broader categorisation of resources, namely human capital, financial
resources, information systems and organisational culture. Despite similarities in the
broader grouping of resources, uniqueness in resources and competitive advantage
derived therefrom is in the attributes of each of the resources that a reinsurance firm
own. The main driver for basing positioning and differentiation strategies is that
resources are controllable and manipulative compared to industry factors. Though
the results support the underlying principles of the resource-based view, it is notable
that its prescriptive nature with regard to resource characteristics, does not hold for
some of the resources such as human resources, which are not perfectly immobile.
Description
Bibliography: leaves 79-89